The most valuable trading lessons! 🤑
I have been trading for over a decade. I've learnt so much. Many lessons were learned the hard way. I was once told, 'The best way to learn is to hit your head'. This summarises much of my trading journey.
Here are three critical lessons I've learnt:
1️⃣ Drawdowns are normal and should be fully expected. Most unprofitable traders give up once they hit an inevitable drawdown period. The real test of being a trader is your ability to stick with your trading rules despite consistent losses. Giving up on a trading strategy and jumping ship is a common trait for losing traders. Sticking with the plan, despite losses, is a common trait for winning traders.
2️⃣ Risking less than 1% per trade is a must. Responsible and successful risk management involves placing a stop loss and risking 0.25-0.50% per trade. The first step to blowing an account is when you start betting too much, no matter how small or large your trading funds are.
3️⃣ Longer-term trading leads to less emotional trading. If you are trading 1, 15, or 30-minute charts and become too emotional, try higher time frames. I would even say the higher the time frame, the lower the emotion.
Which key trading lessons have you learnt?
I can teach you a lot more in my Forex podcast series: https://www.actualforextrading.com/forex-podcast
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